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Existing W-8 form OK to use for 2014, says IRS Official

Earlier this year, the Internal Revenue Service (IRS) released new versions of Forms W-8 to reflect the
changes made by Foreign Account Tax Compliance Act (FATCA). The W-8BEN-E is required by entities and the W-8BEN is for individuals. Furthermore, there is a new Form W8-IMY which is used by foreign intermediaries or foreign flow-through entities. As the instructions for the Forms W-8BEN-E and W8-IMY have not been released, the IRS understands that without such instructions, the forms may not be correctly filed and therefore, they are working diligently to complete these instructions.

Bloomberg reported, at the 26th Annual Insurance Tax Seminar sponsored by the Federal Bar Association Section on Taxation on May 29, that IRS Associate Chief Counsel, Steven Musher, stated taxpayers can use the existing series of W-8 forms through December 31, 2014 to begin their account identification procedures under FATCA. This will help alleviate confusion of which form to use, given the lack of instructions for the new W-8 BEN-E.

In Notice 2014-33, the IRS also says that it would take reasonable compliance efforts into account in a two-year transitional period provided the responsible reporting party has “made good faith efforts to comply with the requirements of the chapter 4 regulations and the temporary coordination regulations.” Musher noted that when evaluating whether FATCA efforts are made in good faith, “written procedures that reflect what is being implemented will be received well.”

During this transitional period, it is imperative to contact your tax advisor to ensure you are making a reasonable effort to comply with your existing FATCA requirements. If you need help identifying your company’s FATCA status or with FATCA registration, please contact us.